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….queries why Guyana ignored Brazil’s proposal for 200+MW plant“It’s a big project…It is a huge project and we cannot afford to make a mistake here.”   Former Minister of Finance Carl Greenidge, while lauding the derivatives of cheaper and competitive electricity, questions why the Government of Guyana ignored the Brazilian proposal a few years ago and settled on the Sithe Global option.With the Brazilian involvement there would have been an avoidance of a power glut given that the neighbouring country would have purchased a significant percentage of the power supplied by the proposed Hydro-Project.Greenidge, speaking with this publication recently, said that while hydro-power electricity will be a plus for Guyana one of the questions to be pondered on is whether the choice of the Amaila Falls location is the most suitable.Greenidge drew reference to the Brazilian proposal following a bilateral engagement with that country.Following that meeting with then President Bharrat Jagdeo and his Brazilian Counterpart Luiz Inácio Lula da Silva,Cheap NFL Jerseys China, the two had issued a joint communiqué stating inter alia that: “the two Presidents declared their satisfaction with the possibility of initiating in the near future,Cheap NFL Shop, the feasibility studies that are being analysed by the Inter American Development Bank, on the Guyana-Roraima integration project, which involves the construction of a road linking the two capitals, a port and hydroelectric facility in Guyana and an industrial zone in Boa Vista.”The project was conceived by Go-Invest and Investe Brasil.Greenidge reminded President Lula had offered to collaborate with Guyana to build a hydro facility and had also agreed to purchase over 100 MW from the plant which was proposed at more than 220MW.The proposal by Sithe Global for which the Guyana Government has signed on to is currently at US$840M for a total of 165MW.“The interesting question is: what has informed our ignoring of that proposal to pick up another one by the Chinese?”Greenidge’s reference to the Chinese stems from the fact that as a result of the agreement with Sithe Global,NFL Jerseys China, a Chinese contractor has been employed, given that more than US$413M would be coming from a Chinese loan.The Guyana Government is supposed to invest some $US100M while Sithe Global looks to invest a further $152M.The deal now hinges on a loan from the Inter American Development Bank (IDB) for some US$175M.Greenidge further questioned whether the agreements entered into for the construction of the Amaila Falls Hydro-Electric Plant “were above board.”He also said that APNU will be checking to ascertain that the terms of reference for the acquisition of the capital and the delivery of the project “are consistent with the national interest.”Greenidge insisted that it was not a matter that would be settled by just having the principals meet and chat, but rather it has to be independently assessed, “because it’s a big project…it is a huge project and we cannot afford to make a mistake here.”He emphasized that APNU which he represents, would want to see an independent assessment of the many variables associated with the project.Following the joint communiqué issued by the Brazilian and Guyanese Presidents, the IV Summit of the Union of South American Nations (UNASUR) was held in Guyana where Brazil had again recommitted to supporting the construction of the Hydro Project in Guyana.Brazil had also announced some of its plans to help Guyana to further integrate with the continent by assisting with a road to complement the bridge across the Takutu River.Speaking during the summit and just after he was conferred with the Order of Excellence, President Luiz Inacio Lula Da Silva noted that Brazil has a continued interest in deepening its ties with Guyana and said his successor, Ms Dilma Rousseff, will continue to implement the projects agreed upon by the Presidents of both countries.Two of the projects that he mentioned are the hydro project and the Linden to Lethem road.Only recently, an International Monetary Fund (IMF) report reiterated that the Guyana Power and Light Company (GPL) would have to pay US$100M annually for electricity generated from Amaila Falls.The IMF report also sounded caution against the contingent fiscal liabilities associated with the large hydro project.“The AFHP is expected to have a transformational impact on the Guyanese economy, but also poses large fiscal risks, should it fail to deliver the promised benefits,Wholesale Authentic Jerseys,” the IMF staff report noted.The report, which was completed at the start of last year, states that in the event that the contractor walks out of the project and the government takes over, the debt that would be accrued would be serviced by the same money that would have otherwise gone to the contractor.The Guyana Government is pressing ahead with the construction of the hydro project which it hopes would lower energy costs and improve energy reliability.However,China NFL Jerseys, there are risks that could come if large industries which currently generate their own electricity because of high GPL charges get lured into the cheaper hydro power.“A key issue…is the extent of the displacement that (the hydro project) can provide, as GPL would need to maintain backup generation capacity, which increases with the size of its market, when private self generators purchase cheaper electricity from GPL and stop self generating.”Electricity generation in Guyana has been based on outdated technology, using imported high cost fuels. As a result, electricity supply has been unreliable and at a high cost (32 U.S. cents per Kilowatt hour),Pat Tillman Cardinals Jersey, causing several private sector entities to install their own generation capacity. The dependence of electricity generation on imported fuels, of approximately US$90 million a year, has also exposed the economy to the vagaries of international price movements. Guyana Power and Light (GPL) also suffers from an aging distribution network,Cheap Jerseys USA, and weak revenue administration, the IMF staff report noted.Since Amaila Falls will generate more electricity than is demanded, it will allow GPL to increase its revenue stream over time despite the projected lower tariffs.
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